E. Calculate and interpret the Volume and management variances on the cost sides.

Volume Variance = Static Costs – Flexible Costs = 4.1 – 4.1 = 0 In words Newark General Hospital had no affect of volume to the costs of the Hospital, so, there was no change in the volume, which leaded to higher cost.

Management Variance = Flexible Costs – Actual Costs =4.1 – 4.2 = -0.1 In words, in the Hospital cost overrun happened by some factor which are either controllable or can be controlled by management.

F. How are the variances calculated above related? Explaining variances in financial statements is vital to the success of a business. Variances are the difference between budgeted amounts and actual income or expenses. Managers use variance reports to make changes in financial forecasts and monitor the performance of a business or organization. Variance explanations might prompt a manager to put stronger financial controls in place or to reallocate resources.

8.2: 2007 revenues for the Wendover Group Practice Association for four different budgets, in thousands of dollars:
| |Flexible…

Chapter 5
REVIEW QUESTIONS
1. How did the described volcanoes in Iceland and the Philippines change the environment to lesser or greater extents?
2. Name and describe the attributes of the two categories into which all organisms can be divided based on how they obtain nutrition.
All organisms can be divided into autothrops, which produce their own food, and heterothrops, which need to get their food from somewhere else.
3. Name and describe the roles of the three main trophic categories that make…

CHAPTER 8
Political Participation
Objectives
This chapter reviews the much-discussed low voter turnout and the poor percentage of other forms of political participation in the United States. After reading and reviewing the material in this chapter, the student should be able to do each of the following:
1. Explain why the text believes that the description, the analysis, and many of the proposed remedies for low voter-turnout rates in the United States are generally off base.
2. Compare the ways…

Chapter 8 1,4,5
1. Cray Research sold a super computer to the Max Planck Institute in Germany on credit and invoiced €10 million payable in six months. Currently, the six-month forward exchange rate is $1.10/€ and the foreign exchange advisor for Cray Research predicts that the spot rate is likely to be $1.05/€ in six months.
(a) What is the expected gain/loss from the forward hedging?
The expected gain from this sale can be figured by using this equation:
10,000,000(1…

Activity Handout 7.1
Solve This Problem
Choose from the list of problem scenarios below. Using the steps involved in problem solving that were discussed in this chapter, describe how you would go about solving this problem.
1. Mrs. Smith’s daycare provider is closing in four weeks. Both Mr. and Mrs. Smith work full-time during the day and need daycare for their child. They have only a short period of time, however, to find a new, safe, reliable daycare provider. : I would start looking or asking…

July 1, 2014.
Asset B: On January 1, 2014, Columbia, Inc. signed a fixed-price contract for construction of a warehouse facility at a cost of $1,000,000. It was estimated that the project will be completed by December 31, 2014. On March 1, 2014, to finance the construction cost, Columbia borrowed $1,000,000 payable April 1, 2015, plus interest at the rate of 10%. During 2014, Columbia made deposit and progress payments totaling $750,000 under the contract; the weighted-average amount of accumulated…

Chapter 8
Segment and Interim Reporting
Chapter Outline
I. FASB Accounting Standards Codification Topic 280, Segment Reporting (FASB ASC 280), provides current guidance on segment reporting.
A. ASC 280 follows a management approach in which segments are based on the way that management disaggregates the enterprise for making operating decisions; these are referred to as operating segments.
B. Operating segments are components of an enterprise which meet three criteria.
1. Engage in business…

Chapter 8 Case Study
Scenario: An elderly woman showed symptoms of near syncope and was admitted via ambulance to a small community hospital. She experienced an inability to move on her own and almost lost consciousness while watching her grandson play basketball. Her symptoms occurred during a visit to her daughter’s home, which is approximately 150 miles from Liza’s home. When Liza was admitted to the hospital, her daughter explained the numerous types and dosages of medications her mother was…